Almost $22.2 million in payments from Google have been distributed to 108 Canadian news outlets as part of an agreement linked to the Online News Act. This initiative, led by the Canadian Journalism Collective, is aimed at providing financial support to media organizations in exchange for a five-year exemption from the legislation designed to aid journalism hit by revenue losses due to tech companies.
On Wednesday, the collective revealed the primary recipients of the funding. Notable organizations like Postmedia, the Globe and Mail, Metroland Media Group, La Presse, Coopérative nationale de l'information indépendante, Black Press Group, and The Canadian Press each received over $1 million. Approximately 100 additional outlets garnered smaller amounts, many of which reached six figures.
The payments, completed by April 23, account for sixty percent of the total funds that eligible organizations will receive, with two more rounds of payments anticipated by year-end. Overall, Google is set to contribute $100 million annually to support journalism in Canada, ensuring that media companies can recuperate some of the revenue lost due to the dominance of tech giants.
Sarah Spring, the executive director of the Canadian Journalism Collective, emphasized that the funds represent a significant step towards ensuring "Big Tech compensates news media for their journalism equitably and fairly across Canada’s news ecosystem." She characterized the payments as a historic investment that empowers diverse voices and establishes new precedents in media funding and transparency.
This year, about $98 million will flow to journalism organizations, while an additional $2 million will be reserved for administrative costs. Notably, CBC is set to receive approximately seven percent of the total fund, which translates to around $6.8 million. Additionally, broadcasters will share a pool of $29.4 million, accounting for about 30 percent of the overall distribution, whereas publishers will split the remainder of around $61.7 million.
The collective stated that the total amounts received by each outlet could increase as they verify the eligibility of applicants, potentially reallocating funds to compliant media organizations. Furthermore, the collective will maintain a bi-weekly publication of recipient names and disbursed amounts. Eligible publishers were previously informed that they could expect around $13,798 per full-time equivalent journalist based on a standard of 2,000 working hours per year. Broadcasters, on the other hand, were estimated to receive approximately $6,806 for each qualifying employee.
Industry group News Media Canada provided even higher estimates, suggesting that publishers could receive between $18,000 and $20,000 per journalist. These figures likely increase due to the inclusion of ineligible organizations in their calculations.
To qualify for the funding, organizations must operate within Canada, employ at least two journalists, and belong to a recognized journalistic association, adhering to a code of ethics that emphasizes fairness, independence, and rigorous reporting.
The Online News Act, which established the eligibility criteria, is designed to ensure compensation from search engines and social media companies that generate over $1 billion in annual global revenue and attract a minimum of 20 million Canadian average monthly unique visitors or active users. While Meta, the parent company of Facebook and Instagram, is also required to comply with this legislation, it has opted to block access to Canadian news on its platforms to evade payment obligations.
This financial initiative marks a critical moment in the relationship between tech companies and traditional media, aiming to sustain journalism amid the rapidly changing digital landscape.
